Best Online Broker In Spain [2022 English Guide]

Spain is a financial powerhouse in the European Union, and because of its high population, it has a significant financial market. It has also proven to be a preferred destination for those looking to invest in foreign exchange and stocks since brokers are kept in check by vigilant regulatory authorities. The financial regulatory body is called the Comision Nacional del Mercado de Valores or the National Securities Market Comission.

The process of investing in stocks can seem like an intimidating task. But with a bit of help, you should be able to find an option that lets you invest the way that you want, while also considering your risk appetite. While finding a trustworthy online broker can be a challenge, this guide will discuss the services of a few of the bigger brokers in the market and walk you through the process of investing.

Quick Comparison Of The Best Online Brokers In Spain

	Interactive Brokers	DEGIRO	Saxo Bank	XTB	eToro
Minimum balance requirement	×	×	$600 – 2000 depending on your residency	×	$10 – 10,000 depending on your residency
Crypto possible	√	×	√	√	√
Inactivity fee	×	×	√	√	√
24/7 customer support	√	×	×	√	×
Deposit with bank card	×	×	√	√	√
Base currencies supported	23	9	26	5	1

Which Financial Products Can You Trade With An Online Broker in Spain?

An online broker can offer a variety of financial products, and not every broker will have the same offers. Some will be dealing exclusively in a few products, while others might offer a variety, depending on their expertise and scale of operations. The rates offered will vary a great deal, and streamlined brokers might be able to offer you better rates. A few common areas of investment include:

• Forex currencies
• Equities
• Commodities
• Cryptocurrency CFDs
• Indices
• Metals
• Options

What Are The Possible Fees Of An Online Broker in Spain?

Regardless of the company you go with, you should expect to pay some fee to the broker in exchange for their services. If you want to begin investing, you will also need to pay for it. The fees can quickly add up over a longer time period, and before you know it you might have spent a lot on this alone. While the exact fees will differ, some standard fees you will need to pay remain the same.

Brokers usually charge commission fees in exchange for providing their specialized services. These services can include sales and purchases, consultations and negotiations related to the facilitation of trading or administering investments. This fee will usually be charged either as a percentage of the total value of the transaction, a fixed fee or a combination of both depending on the broker and the industry they operate in. Some platforms even offer zero brokerage fees.

Transaction fees

These fees are charged whenever you buy or sell stocks, options, exchange-traded funds or mutual funds. There is also a sales load that will be paid as a commission to the broker or salesperson who sells the fund in question and an advisory fee paid out as a percentage of the total value to the financial advisor managing the assets.

Other operating fees

There are a number of other fees that individually might not seem like much but can quickly add up. These can include things like inactivity fees, subscriptions for research and data, and trading platform and paper statement fees. Some of these are optional, meaning you can opt out of them if you don’t need them. Others can be avoided with a little research and finding a platform that does not charge a fee for these things.

Which Is The Best Online Broker In Spain?

Over the recent past, online brokers have become a popular choice in Spain. With the market and the number of online options growing quickly, it can be difficult to decide which broker to go with. We have done the research for you and have put together a list you should consider before investing your money. The services offered by these brokers might differ, so it will be up to you to decide which option works best depending on your requirements.

Interactive Brokers

This international broker based out of the US deals in all kinds of assets. It is regulated by several top-tier financial authorities including the US Securities and Exchange Commission and UK’s Financial Conduct Authority. It has an extensive range of products available like stocks, forex, options, futures, cryptocurrencies, structured products etc. Both everyday investors and advanced traders will find this app useful.

Pros

• Low trading fees
• User-friendly web trading platform with two-step login for added security
• Many helpful research tools to aid your experience
• No restriction for a minimum deposit
• Excellent customer service, albeit a bit slow
• Demo account and educational videos available

Cons

• Complex and long account opening experience
• A complicated desktop trading platform
• Customer service seems to be understaffed
• Cannot deposit money in account through bank card or electronic wallet

DEGIRO

This is a German-Dutch low-cost broker operating online, which has quickly gained popularity due to its discounted rates. It is regulated by the Federal Financial Supervisory Authority in Germany. After merging with the flatexDEGIRO Bank AG in 2021, this is now the biggest online-only broker which has its own banking license. It offers a large variety of financial assets for trade including stocks, EFTs, options, bonds etc.

Pros

• Offers among the lowest fees in the market
• Regulated by top-tier authorities
• User-friendly mobile and web platform
• Account opening is a quick digital experience, with no requirements for minimum deposits
• Tutorial and other educational videos available for the trading platform

Cons

• Does not offer forex trading
• Research tools are limited
• You cannot make deposits through credit or debit cards
• Customer service is not available 24/7 and there is no option for live chat

Saxo Bank

Saxo Bank is a Danish investment bank which was founded in 1992. It provides its services globally and operates separate legal entities in each region. The services offered might differ slightly depending on the country. The company is regulated by a number of authorities including Danish Financial Services Agency (FSA) and the UK’s Financial Conduct Authority (FCA). It is a good option if you are an investor looking for a good platform with excellent research material.

Pros

• Broad range of tradable products
• Excellent research features available
• User-friendly account opening process
• The platform is available in almost every country
• Multiple deposit options available including debit and credit cards
• The app gives you trading ideas and information on asset fundamentals
• Saxo Bank has a bank license and also offers protection against negative balances

Cons

• High fees for options, futures and bonds
• High minimum deposit requirement
• There is no option for live chat, and customer service is not available round the clock

XTB

XTB is a global stocks and CFD broker founded in 2002. European customers can also get commission free trading up to a large limit, which is a facility not available at many other brokers. It is also regulated by many top-tier financial regulatory authorities.

Pros

• Account opening only takes about 15 minutes including identity verification
• No requirement for a minimum deposit in your account
• There is protection against minimum balance
• Educational material is plentiful and of a high quality
• It also offers free stocks trading and low forex spreads

Cons

• Transferring funds through e-wallets has a 1-2% fee
• The platform is complex for beginners
• High fees for CFDs
• Charges an inactivity monthly fee if you have not traded or made deposits in the account

eToro

eToro was founded in 2006 and is perhaps the leading company in social trading, which allows you to follow and copy the trades made by other people who are more successful at it. eToro is regulated by the Financial Conduct Authority in the UK, which is a good indication of its safety levels. You can avail their services in a number of languages including Spanish, and it is a great option for beginners due to its simplicity.

Pros

• Free stock and EFT trading
• Account opening is straightforward
• Allows social trading
• Low minimum deposit requirement
• Deposits can be made through debit and credit cards
• The web trading platform is user-friendly and protected by two-factor authentication
• Commission-free trading of stock and EFTs

Cons

• Customer support is lacking
• The platform only lets you open a USD account, and will charge you a conversion fee for any deposits made in another currency
• The research features are lacking and do not give high quality insights

How Do You Start Online Trading In Spain?

Online trading can be a great way to invest your savings and add to them over time. Today, it is probably easier than ever to invest because of the large amount of information available and the variety of brokers you can go to. Using an online broker is cheaper and a relatively straightforward option. You can choose to go to a traditional full-service brokerage but that will cost you much more.

Determine Your Approach To Investing

Before investing anywhere, you need to be clear about what you are looking for as a return to your investment. Is it just a casual activity or do you want to establish it as an alternate stream of income? In addition, what is the level of risk that you are willing to undertake and how much time can you spend actively managing your portfolio yourself? All of these factors will determine where you should be investing and the kind of broker you will need to handle these requirements. You will also need to decide how much you want to invest.

Choose The Online Broker 

The next step will be to choose the right broker for yourself. As discussed above, this will depend on your needs regarding investment and the fees charged by each broker. The information in this article should also be a helpful starting point.

Open Your Investment Account

To be able to invest in stocks and other financial products, you will need a specialized account called a brokerage account. You will open this account with the company that you choose. The entire process shouldn’t take more than a few minutes. You can then add funds to your account in whichever way you prefer e.g. transfer, wiring money or mailing a check.

Choose The Stocks Or Products You Want To Invest In

Once you have chosen a broker and opened an account, you should then consider where you can invest your money. Your broker might recommend some stocks to help you get started and familiarized with the process. There are also a few things you must be mindful of. You should be investing only in the stocks or products that you understand to some degree. Even if you will not be actively managing your account, it is a good idea not to venture into something you do not understand, at the risk of incurring losses. 

Keep Investing Regularly

If you are serious about investing and continuing to do it in the future, the biggest key is consistency. Even if you are not making huge returns on your investment, as long as you are consistent, you can gain in the long run. You should hold on to stocks etc. as long as business remains good or until you are in need of the money.

This also means you should steer clear of volatile stocks (which might give you a high return, but will also lead to high losses in some cases). Finally, you should seek to diversify your portfolio by investing in a variety of financial products. But this should, of course, be balanced with the need to stick to businesses you understand. If there is a certain industry that you understand well, it doesn’t hurt to have it take up the majority of products in your portfolio.

Conclusion

There is generally so much information about the subject online that it is hard to find a platform that works for you. The process can become overwhelming but this guide aims to give you clear-cut information on the topic. By having the most useful information summarized in one place, you can begin investing slowly and continue educating yourself.